Indian Real Estate Attracts Massive Domestic and Foreign Investments in Q2 2024

Domestic investors poured USD 637.9 million into the Indian real estate market during April-June, marking a fivefold increase compared to last year, due to strong demand and expectations of better returns. Institutional investments rose by 96% year-on-year, reaching USD 3.1 billion, with foreign investors leading at 71% of the total. The industrial and warehousing sector saw significant investments, while residential assets also experienced notable growth.

Domestic investors injected USD 637.9 million into the Indian real estate market during the second quarter of 2024, marking a fivefold increase from the previous year, according to data released by real estate consultant Vestian on Saturday.

The data showed institutional investments in Indian real estate surged by 96% year-on-year, totaling USD 3.1 billion in April-June, compared to USD 1.6 billion in the same period last year. Shrinivas Rao, CEO of Vestian, highlighted the substantial investments made in Q2 2024 by foreign investors amid fading uncertainties over major global economies, coupled with active domestic participation.

Foreign investors contributed USD 2,218.1 million, while domestic investors injected USD 637.9 million, up from USD 127 million the previous year. Co-investments grew to USD 260.2 million from USD 5.5 million. Vestian reported that foreign investors accounted for 71% of the total Q2 2024 investments, with domestic investors making up around 20%.

The industrial and warehousing sector recorded a notable deal worth USD 1.5 billion, constituting 48% of the total Q2 2024 investments. Residential and commercial assets followed with 24% and 20% shares, respectively. Institutional investments in residential assets increased to USD 732.8 million, while industrial and warehousing assets received USD 1,500 million, up from last year's USD 133.9 million. Rao anticipates a continued rise in investments in upcoming quarters driven by robust economic growth and infrastructure development.

(With inputs from agencies.)